Have a 25 year old full time student with no income --only source of support comes from parents and student loans. She is primary obligator for loan --however her parents have cosigned so they also have a potential financial obligation. The parents provide about $10000 outright and the student loan is $25000. Can student be claim on parents return as qualifying relative???
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tax queen student 25 yr old
There is no age limit on a qualified relative. If there is any loan interest I believe the parents can also take that credit. -
If the parents were a guarantor then I would say that the loan would not count as support for the parents. If the parents are equally liable and the lender could proceed first against the parents then I would take the position they are in a more likely position to pay the loan. I would count it towards the parent. I would read the loan agreement.
Look at cases similar to McCauley 56 TC 48 (1971) to see if there is the fact pattern you presented.Comment
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